Economics A Level: How can the Price Elastic Demand change over a Demand Curve?
[For a Normal Good]
-What happens to Revenue therefore?

Question

How can the Price Elastic Demand change over a Demand Curve?
[For a Normal Good]
-What happens to Revenue therefore?

go kys · Accepted Answer

-It begins at Negative Infinity - High Price but 0 Demand
-Then eventually reaches -1 at the Midway, and then to 0 when Price = 0 
-Revenue will be Constantly Changing therefore. Total Revenue will be when the PED is - or + 1.

Economics A Level

How can the Price Elastic Demand change over a Demand Curve? [For a Normal Good] -What happens to Revenue therefore?

-It begins at Negative Infinity - High Price but 0 Demand -Then eventually reaches -1 at the Midway, and then to 0 when Price = 0 -Revenue will be Constantly Changing therefore. Total Revenue will be when the PED is - or + 1.

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